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2018 (5) TMI 155 - MADRAS HIGH COURTComputation of deduction u/s 80HHC - Whether Machine Charges and other income should be treated as income derived out of business - Held that:- The assessee is not carrying on machining activity as its main line of business. This fact has been admitted by the CIT(Appeals) as well as before the Tribunal. The activity of machining done by the assessee is when the machinery, which is used for manufacturing activities for export, was lying idle. When the machineries are not put to use for manufacturing activity, the assessee has engaged in machining work, undertaking it as a job work. Commissioner of Income Tax (Appeals) as well as the Tribunal rightly held that the assessee had used plant and machinery to get income and that has to be considered as business income only. Further, with regard to a sum of ₹ 26,000/- representing other income, the Commissioner of Income Tax (Appeals) as well as the Tribunal held that it has to be treated as business profit. - Decided in favour of assessee.
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